Live Oak Bancshares price target raised to $28 from $26 at Truist

Truist raised the firm’s price target on Live Oak Bancshares to $28 from $26 and keeps a Buy rating on the shares as part of a broader research note on Community and Regional Banks. The firm is updating its model to reflect lower net interest margins, slower loan growth, and incrementally higher credit costs while calling for the Fed Funds rate to be stable through Q1 of 2024, followed by 100bps in rate cuts by the end of 2024. Truist is also forecasting incrementally higher net charge offs, provisioning, and reserve levels through 2024 while favoring banks with “conservative credit cultures, strong balance sheets, and ability to offset ongoing deposit cost pressures.”